5 Myths about The World’s Most Favourite Cryptocurrencies Today
When you hear the words cryptocurrency or blockchain chances are the first thing that comes to mind is Bitcoin. Bitcoin is actually one of well over 1500 different cryptocurrencies in the marketplace. It is also the most popular and the oldest one available. All other cryptocurrencies owe their existence to Bitcoin and the blockchain technology that was developed along with it. So it is only natural that something this popular would become a target of some kind. But what about the other stuff you hear about related to Bitcoin and the world of alternative pay platforms? Here’s a look at the top 5 myths about Bitcoin.
1. Bitcoin Is A Fad
Well, that’s just plain wrong. When you measure the overall volume of Bitcoin over the past few years you discover that if anything, the cryptocurrency has actually gained in popularity. For example, in late 2013 there was about $154-million in Bitcoins moving per day. While that in itself is a pretty impressive rate, the volume in September 2017 was at well over $11-billion per day. Plus, it is not a cryptocurrency myth that the price is not an indicator.
The price per ‘coin’ has gone from $118 to well over $17,000 and as of January 2018, it was hovering around the $14,000 per coin price. This also makes Bitcoin the most popular of the Cryptocurrencies out there.
2. Bitcoin Value Is Not Tangible
What? Did you not just read the last point? This is truly a cryptocurrency myth. Sure, the reasoning comes from those who claim that since Bitcoin isn’t supported by something like gold or silver, it isn’t as secure. However, it has a value and that continues to grow or stabilise simply because individuals keep buying them. These individuals, in turn, use Bitcoins to trade on or even purchase other currencies.
Plus, there are more and more retail operations that are accepting Bitcoins as a form of payment for products and services. There may be a time when Bitcoin payments will be as commonplace as debit and credit cards. Just like gold, Bitcoin values do fluctuate but good luck spending gold coins versus Bitcoins.
3. Bitcoin Is Risky As It Is Anonymous
Um, okay. Let’s look into this one. Common sense should tell us that if you have to invest your own finances into something that is anonymous that you are being duped into some sort of scam. There may be some ‘anonymous’ elements at play such as your cryptocurrency network trading account you can operate with a fake name to protect (or hide) your identity. But that’s as far as it goes. Each and every Bitcoin transaction gets recorded and that documentation is in a ledger that is accessible to the public.
Yes, it may say that Batman did some trading, but it will indicate precisely how much money was transferred from your trading account and what you got for it in return. There are no shady dealings done in a dark back alley under cover of night. Also, your trading account would have only been activated once you registered with photo ID to verify your real identity. Nothing anonymous there.
4. Bitcoin Is Connected To Organized Crime
Sooner or later a cryptocurrency myth is going to surface pointing to the use of Bitcoin in criminal activity. Sure, criminals tend to latch on to different payment options to hide or slip their activities undercover, but this is really as far from the truth as it could possibly be. Where criminals may be attracted to Bitcoin is that it is not connected to banks, financial institutes or other entities like that.
With individual investors driving it, possibly some bad guys would see this as an opportunity. However, as mentioned at the end of the previous point, there is a public ledger. Not a lot of criminals are known to want their activities publicised. Well, not the smarter ones, anyway. In fact, there are several checks and balances that are part of the blockchain verification protocols so the average criminal would steer clear of that.
5. Bitcoin Can’t Buy Anything
Alright. We’ve heard enough. We’ve already explained that this is a cryptocurrency with the highest value of all of the others available. That value must mean something. It actually means that instead of just having the payment options of cash, debit, credit or check, you now have cryptocurrencies in your wallet. Well, more accurately, in your virtual wallet. The point is, there are many places that accept Bitcoin payments for goods and services. It’s true. You can even do online searches to see who is set up to take your cryptocurrency in exchange for products.
In fact, that list is growing daily. It won’t be long and you’ll be able to buy anything you need in your day-to-day life with your cryptocurrency debit card. Many people already are. It won’t be long before you see signs at many cash registers stating that Bitcoins are accepted there.
With the influx of activity in the world of cryptocurrencies, there was bound to be as much activity in the ole rumour mill. As a result, several myths have surfaced in an effort to either scare you off or confuse the facts related to this relatively new form of money. Bitcoin is the oldest and most popular of the current cryptocurrencies. It has set the pace for all others that have followed.
However, once something gets popular, there is a movement to try to tear it down. These myths are unfounded and based on a misunderstanding of the entire system cryptocurrencies, and blockchains are built upon. Don’t believe everything you hear about Bitcoins as chances are, some of it will be incorrect. Do your homework and get the facts.
Image Credit: Anastasiia Bakai/Shutterstock
By Sam Makad